Banking Panic and Chaos in the UK, as Customers Locked Out of Accounts for 5 Days Running

Customers unable to access their accounts

TSB online banking problems continue. The bank had said last week that it would take down its mobile app and also it’s online banking for a few hours. The app was taken down during the weekend, but it’s yet to be restored. The bank was taking the app down to sort some serious issues where TSB customers were able to view other people account details something which raised a lot of concerns attracting the attention of the Information Commissioner. The Bank’s CEO Paul Pester said that he was very sorry for the problem and inconveniences and that nobody would be left out of pocket.

According to Pester:

“This not the type of service we are happily providing, and it’s not what our customers expect from TSB and for that reason I am deeply sorry.”

With many people preferring the convenience of online financial access people have reported a wide range of financial problems they have experienced by being unable to access the online platform. One user Colin Patterson said that: “The fact that there is no official statement other than their Twitter replies is outrageous.” He was frustrated since he had tried to apply for passport renewal, but he was unable to.

Another annoyed user said that: I have been using this branch for 42 years now. I will switch to Lloyds immediately I get access to my account.” More to that Jessica Callaghan from Newcastle stated that:

“I am uncomfortable and angry because they are not communicating. All they have said is sorry and the account will be back shortly. What I expect of them is to give an official communication of what is happening and also compensate each customer.”

Another disgusted user was Amanda Verbaan-Dunn who is the owner of Wilton Hotel in Blackpool who said she was unable to pay her employees since she was away. According to her: “I will now be forced to go back three days earlier so that I can pay my employees using other means. The fact that the bank is not communicating is inexcusable.”

What could be the problem?

TSB was part of the Lloyds Banking Group before it split from the giant banker. It, however, continued to use Lloyd’s banking platform as it developed its own platform. The platform was ready last weekend and TSB moved all its customer’s data from Lloyd. The disruption was well communicated, and each customer was aware. However, the bank had promised that the disruption would take a few hours and that the system would be ready by 6pm on Sunday.

When Sunday came, and the platform went live, many people could not access their online accounts, and those who did were presented with details of other people. Since that data problem, they have not been able to access their accounts.

The Financial Conduct Authority said that it was in communication with the bank. The Authority stated that: “We are working with the firm to ensure proper communication to customers. We will engage the firm to understand the problem and the steps they are taking to ensure that the same does not happen again.”

The Treasury Committee also came in to try to look into the crisis by writing to the TSB CEO. The Committee wants to understand the extent of the failure and how the bank plans to compensate its customers. According to MP Nicky Morgan, the Chair of the committee:

“It’s not right to expose customers to IT failures. All the TSB customers are supposed to know what exactly happened, how they will be compensated and when the operations will be back to normal.”